The energy sector has been pummeled this year, with crude oil sliding to a recent $45 a barrel, but we see a buying opportunity in a fast-growing independent domestic producer that can thrive even with lower oil prices – Sanchez Energy (SN).
Sanchez is showing impressive operating results, even amid lower oil prices. That’s because this independent oil & gas producer, focused on the Eagle Ford Shale in Texas, is harnessing unconventional drilling technology to boost its production while lower costs, and in the process, beating OPEC at its own game.
* Over the past 3-years SN production has grown at a compound rate of 20% annually, with the potential to boost production to 35% …
* Meanwhile, SN has dramatically lowered its well costs by over 50% since 2014, to around $20 a barrel today.
* And unlike many leveraged oil producers, SN has a strong balance sheet with total liquidity of $565 million with no debt maturing until 2021!
Plus, as you can see in the chart below, SN shares appear to have bottomed and the stock is reversing to the upside, offering plenty of appreciation potential ahead.
The chart above of Sanchez Energy is showing bullish reversal action after challenging its August 2016 low. And it has now turned back above its 21-day moving average and downtrend channel resistance – indicating that a larger advance is dead ahead.
But it’s not just the technical price action that’s bullish for SN. Analysts are also bullish, with Bloomberg projecting a 12-month price target of $11.75. That’s a whopping 75% above current levels of $6.70!
Here’s your action to take right away:
Using 5% of the funds you have allocated to this service, buy Sanchez Energy Corp., symbol SN, at the market, to open. Place a good-till-canceled protective sell-stop at $5.59.
Get this order in right away. Hold all other positions and stay tuned for new trades coming your way again very soon.
Good investing,
Mike and David
